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Can RCM be adjusted with ITC

27 July 2017

I manufacture knitted fabric. yarn comes at 18% IGST or 9% CGST & 9% SGST And on fabric GST is 5%. I will always be having ITC credit. Can that credit be used for paying RCM liability.

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21 Replies

SANDEEP JAIN (Tax Consultant) (487 Points)
Replied 27 July 2017

no to my best knowledge

1 Like

RAJA P M ("Do the Right Thing...!!!") (126993 Points)
Replied 27 July 2017

No...
RCM is not adjustable to ITC. It's directly pay to govt then take reverse / ITC on next month....

1 Like

satish (Chief Mgr.Account & finance) (38 Points)
Replied 27 July 2017

no rcm can not pay with itc amount.

1 Like

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 28 July 2017

negative.....expressly denied in rules of cgst..

1 Like

RAMESH D MODI (Proprietor) (4864 Points)
Replied 28 July 2017

you will have to pay rcm by cash only

1 Like

RAJA P M ("Do the Right Thing...!!!") (126993 Points)
Replied 28 July 2017

Yes I agreed Mr RAMESH Sir.,
Cash means online payment only

1 Like

Anamika (Working) (119 Points)
Replied 28 July 2017

Yes correct RCM can't be adjusted with input. However refund provisions are there for your case.

1 Like

Bhav Bhuti Sharma (Towards Professionalism ) (823 Points)
Replied 28 July 2017

it is liability should be paid and after paying it will become yout itc.

1 Like

Keshav Kakar (80 Points)
Replied 28 July 2017

How can the refund be claimed. As per my knowledge fabric manufacturers are not eligible for refund of ITC.

RAJA P M ("Do the Right Thing...!!!") (126993 Points)
Replied 28 July 2017

Yes. Can't available refund for the textile based ITC...
I don't know the reason.......!
My city is also Textile city.........

1 Like

uday kumar (Accounts) (25 Points)
Replied 28 July 2017

no, you cant use for payment of RCM

Kaushik Deepak (KD) (Officer Accountant) (1136 Points)
Replied 28 July 2017

RCM can't be adjusted with input. However refund provisions are there for your case.

Dont worry you can claim refund under this situtaion Refund Process under GSTREFUND PROCESS UNDER GST Following are the procedures for processing of refund claimed-: Application form for claiming refund can be filed through the GSTN portal. An acknowledgement number would be shared with applicant via sms or email,

once the application is filed electronically. Adjustment would be made to return and cash ledger and reduce the “carry-forward input tax credit” automatically.

Refund application and documents submitted shall be scrutinized within a period of 30 days of filing the refund application. Concept of “unjust enrichment” would be examined for reach refund application.

If it does not qualify, then the refund would be transferred to CWF(consumer welfare fund).

If refund claimed exceeds the predetermined amount of refund then it will go through pre-audit process for sanctioning the refund. Refund will be credited electronically to the account of applicant via ECS, RTGS or NEFT. Application for refund can be made at end of each quarter.

No refund shall be provided for an amount of less than Rs 1000.

RAJA P M ("Do the Right Thing...!!!") (126993 Points)
Replied 28 July 2017

Originally posted by : Deepak Kr. Sharma
	NO RCM can't be adjusted with input. However refund provisions are there for your case. Dont worry you can claim refund under this situtaion Refund Process under GSTREFUND PROCESS UNDER GST Following are the procedures for processing of refund claimed-: Application form for claiming refund can be filed through the GSTN portal. An acknowledgement number would be shared with applicant via sms or email, once the application is filed electronically. Adjustment would be made to return and cash ledger and reduce the “carry-forward input tax credit” automatically. Refund application and documents submitted shall be scrutinized within a period of 30 days of filing the refund application. Concept of “unjust enrichment” would be examined for reach refund application. If it does not qualify, then the refund would be transferred to CWF(consumer welfare fund). If refund claimed exceeds the predetermined amount of refund then it will go through pre-audit process for sanctioning the refund. Refund will be credited electronically to the account of applicant via ECS, RTGS or NEFT. Application for refund can be made at end of each quarter. No refund shall be provided for an amount of less than Rs 1000.